Minutes of Measure A 2006 Oversight Committee January 23, 2008

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CONTRA COSTA COMMUNITY COLLEGE DISTRICT MEASURE A BOND OVERSIGHT COMMITTEE

MINUTES January 23, 2008

6:00 p.m.-8:30 p.m. Board Room, District Office

Present: Maria Alegria, Ed Best, John DuBois, Barry Gordon, Jeanelle Hope, J. Dale

Hudson, Vernon Jones, Colin Nelson, Jerry Okendo, Tim Schulze, Jack Weir Absent: Diane Gibson-Gray , Gary Bell, Leonard McNeil Staff: Helen Benjamin, Deborah Blue, Jackie Flaggs, Peter Garcia, Patricia Kaya,

Ray Pyle, Doug Roberts, Judy Walters, McKinley Williams, Mark Zacovic Guest: John Adam Austin, Student from Contra Costa College 1. Welcome and Introductions: Committee and Guests

Committee members, staff and one guest introduced themselves. 2. Additions and Deletions to the Agenda

The agenda was approved as submitted.

3. Annual Organizational Meeting

a. Selection of officers: Chair, Vice Chair, Secretary By unanimous vote, the Measure A Committee appointed J. Dale Hudson as chair of the committee from January 2008 to January 2009. On motion of Mr. Jones, seconded by Ms. Alegria, the Measure A Committee unanimously approved the appointment of Colin Nelson as Vice Chair. On motion of Mr. Jones, seconded by Ms. Alegria, the Measure A Committee (Committee) unanimously approved the appointment of Jeanelle Hope as Secretary.

b. Meeting Schedule for 2008

The meeting schedule was reviewed. Interim Vice Chancellor, Districtwide Administrative Services Mark J. Zacovic told the Committee that the bylaws call for three meetings per year. Currently, four meetings are scheduled. The committee agreed to review the dates at a future meeting and make changes as necessary.

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c. Committee Membership List

The membership list was reviewed. Dr. Zacovic asked Measure A members to let him or Jackie Flaggs know if there are any changes.

4. Approval of Minutes of October 8, 2007, Meeting

Mr. Weir noted two changes on page three of the minutes. The name of Mr. Soderholm was misspelled in the second paragraph and the third paragraph had a minor change concerning the Governing Board rescinding the PLA. On motion of Mr. Jones, seconded by Ms. Alegria, the Committee unanimously approved the October 8, 2007, minutes, as revised.

5. Presentation: Bond Oversight Committee Roles and Responsibilities

John Hartenstein, Partner, Orrick, Herrington & Sutcliffe, LLP, summarized the roles and responsibilities of the Committee. Ms. Alegria asked whether the Measure A Committee could take a position on certain propositions. Mr. Hartenstein said it would not be within the charge of the Committee to take such a stance. Ms. Alegria asked if it would be alright to take a stance as a private citizen and Mr. Hartenstein answered in the affirmative. Mr. Okendo asked whether the Committee could take a stance on Proposition 92. Mr. Hartenstein said it would be inappropriate and not within the charge of the Measure A Committee.

Mr. Weir asked for clarification on the Committee’s roles and responsibilities in relationship to the Governing Board and staff. Mr. Weir questioned the Committee’s authority in regard to the appropriateness or inappropriateness of challenging a Governing Board decision that the Committee views as pertinent to the expenditure of the bond. Mr. Hartenstein said the Committee should not be adversarial towards the Governing Board and added that its purpose is to assist the Governing Board and work with it through a cooperative relationship.

6. CCCCD’s Scheduled Maintenance Plans

Ray Pyle, Chief Facilities Planner, summarized scheduled maintenance for 2006-07 and 2007-08. Mr. Pyle told the Committee that no bond funds have been used to match state funds. Mr. Nelson asked if “scheduled maintenance” meant the same thing as “deferred maintenance.” Mr. Pyle answered in the affirmative. Ms. Alegria asked about the deadline for the five-year plan. Mr. Pyle said the annual deadline is January. Ms. Alegria asked whether or not the Committee approved this plan. Mr. Pyle said the Committee does not approve the plan. Dr. Zacovic added that the plan would be shared with the Committee when it is completed. Mr. Best asked what would be a “best guess” estimate for scheduled maintenance and asked whether $2M was high for an average amount. Associate Vice Chancellor/Chief Financial Officer Doug Roberts said the state economy was

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better in the previous year and the Governor allocated one-time funds to make up for unavailable money from previous years. Mr. Roberts said that level of funding had not been provided for over a decade. Mr. Okendo asked about scheduled maintenance funds for upgrades. Mr. Pyle said scheduled maintenance keeps a building functioning and working. Mr. Okendo asked whether converting to digital phones is an upgrade. Mr. Pyle said replacements are generally upgrades to existing items. Mr. Okendo asked whether this rationale applied to cards being used in place of keys. Dr. Zacovic answered in the affirmative. Mr. Weir said the Committee’s charge is to ensure that bond money is not spent to cover administrative costs. He added that the 2006 bond does authorize the District to spend bond money for scheduled maintenance and further said that the state does not provide enough money for maintenance. Mr. Weir asked Mr. Hartenstein what the appropriate role of the Committee is in regard to spending funds on scheduled maintenance. Mr. Hartenstein said bond money can be used for routine maintenance and scheduled maintenance money can be used for capital projects. Dr. Zacovic said there are so many capital projects that the dollar amount exceeds the bond money. Mr. Pyle’s attached letter explains the gap in the law whereby the dollars have not been forthcoming from the state. At the April meeting, the dollar amounts will be brought forward for the 2006 so that the Committee can see where the dollars are going.

7. Bond Budget Update, Project Reports and Quarterly Report

Mr. Roberts summarized expenditures for Measure A 2002 and Measure A 2006 bonds. Mr. Schulze asked whether the solar panels would provide power for all of Contra Costa College (CCC). Mr. Pyle said the panels would provide power for one-third of the campus. Mr. Pyle summarized the quarterly report. Mr. Weir asked about the $4M contingency. Mr. Pyle said contingency dollars had all been used and were applied to capital improvement projects at CCC. Mr. Roberts added that interest received from bond monies was dedicated to capital improvement projects and this interest totaled +$7M. Mr. Weir asked about the reference to “interest.” Mr. Roberts explained that when a bond is sold, the money is held in an account. Generally, it is several months before the bond money is spent. During this time, the bond money accumulates interest and it is this interest that is directed to capital improvement projects. Mr. Weir asked if more interest money would be forthcoming. Dr. Zacovic answered in the affirmative. Mr. Pyle added that the interest dollars give the District more building per dollar. Dr. Zacovic also said by December 2008 the Committee would be given a full accounting of the Measure A 2002 bond fund. Mr. Okendo asked whether the interest dollars could be used for instructors’ salaries. Dr. Benjamin said it is one-time money and cannot be used for salaries. Mr. Weir requested a simpler format for “quarterly reports.” He said in the past the Committee was satisfied with giving status of projects as “green light, red light,

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yellow light” to help them identify projects on track, projects slowing down, etc. Mr. Okendo questioned whether any problems existed with the Diablo Valley College (DVC) bookstore after the recent storms. DVC President Dr. Judy Walters said no problems were reported. Mr. Weir asked about the Brentwood and Cowell sites. Los Medanos College (LMC) President Peter García said he met with the Cowell Foundation seven to eight months ago. President García said the Cowell Foundation was willing to entertain the notion of transferring property before the collapse of the housing market. President García also noted that the Highway 4 bypass authority has cut off a favorable access to the property and state parks found archaeological remains on the property so that annexed space could not be used.

Status of Bond Audits for Year Ended June 30, 2007

Dr. Zacovic said the bond audit for 2007 was due this month and added that the findings would be brought to the Committee’s April meeting. Mr. Weir asked that the results of the audit be communicated to the Committee before its April meeting. Dr. Zacovic said he would send out this communication. Dr Benjamin added that the Committee Chair, Vice Chair and Secretary would be given the full audit report.

8. Annual Report to the Community

Dr. Zacovic said the above report was recently distributed. Dr. Benjamin thanked Dr. Blue, Dr. Zacovic and Suzanne Fox for their work on this publication. Mr. Weir said he received a lot of positive feedback as a result of this publication. Ms. Alegria asked about airing this report on Spanish language television stations. Dr. Benjamin said she would work with Mr. Okendo to get this done.

9. Invitation to Solar Power Project Dedication

Dr. Benjamin invited the committee to attend the above event at CCC on January 31, 2008, at 10:00 a.m.

10. Chancellor’s Report

Dr. Benjamin announced that Districtwide enrollment is up. She said the Project Labor Agreement is still being negotiated and added that negotiations are going very slowly. Chancellor Benjamin invited committee members to tour the college facilities if they had not already done so. Mr. Jones added that he toured LMC with Cam Perrotta and his tour was quite enjoyable.

11. Contra Costa College, Diablo Valley College and Los Medanos College Reports Mr. Williams, Dr. Walters and Mr. García summarized ongoing projects at their colleges. Chancellor Benjamin added that $10M had been designated for all three

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colleges to modernize turf, track and associated upgrades. Mr. Weir asked whether the property located at the northeast corner of DVC was residential. Dr. Walters answered in the affirmative, but added that it does not belong to the college. Ms. Alegria asked about population growth in East County and how it is affecting LMC. Mr. García said the campus has increased its capacity to help with enrollment growth. He added that Brentwood has a one-third growth increase.

12. Committee Chair Report

Mr. Weir said he would give the annual report to the Governing Board on January 30, 2008. He said he planned to tell the Board the Measure A funds are being spent in accordance with the requirements.

13. ADJOURNMENT

There being no further business to come before the Measure A Bond Oversight Committee, Mr. Weir adjourned the meeting at 8:32 p.m. The next regular meeting of the Measure A Bond Oversight Committee will be held on April 23, 2008, at 6:00 p.m. in the George R. Gordon Education Center, 500 Court Street, Martinez, California.

jmf Zacovic/Measure A Bond/Minutes/012308-Minutes-J.doc

REVISED

Measure A Agenda, 1/23/08 - Revised

CONTRA COSTA COMMUNITY COLLEGE DISTRICT January 23, 2008 MEASURE A BOND OVERSIGHT COMMITTEE AGENDA George R. Gordon Education Center 500 Court Street, Martinez, California CALL MEETING TO ORDER – 6:00 P.M. PRESENTATIONS FROM THE PUBLIC AGENDA ITEMS

1. Welcome and introductions: committee and guests 2. Additions and deletions to the agenda 3. Annual organizational meeting

a. selection of officers: chair, vice chair, secretary b. meeting schedule for 2008* c. committee membership list*

4. Approval of minutes of October 8, 2007, meeting* GENERAL AGENDA ITEMS - INFORMATION

5. Presentation: Bond Oversight Committee roles and responsibilities* (John Hartenstein, Partner, Orrick, Herrington & Sutcliffe LLP) 6. CCCCD’s scheduled maintenance plans (Ray Pyle, Chief Facilities Planner)

a. 2006-2007 b. 2007-2008

7. Bond budget update, project reports and quarterly report* (Doug Roberts, Mark Zacovic, Business Services and Ray Pyle)

a. Measure A 2002 b. Measure A 2006 c. Status of bond audits for year ended June 30, 2007

8. Annual report to the community* 9. Invitation to solar power project dedication – January 31, 2008*

REPORTS

10, Chancellor 11. Contra Costa College report (President McKinley Williams) 12. Diablo Valley College report (President Judy Walters) 13. Los Medanos College report (President Peter García) 14. Committee chair report (Jack Weir)

a. Review annual report to Governing Board (January 30, 2008) 15. Items for consideration for future agendas 16. Next meeting: April 23, 2008, 6:00 p.m., District Office Board Room

ADJOURN *Attachment

MEASURE A 2002/2006 BOND OVERSIGHT COMMITTEE January 23, 2008

CCC DVC LMC DO

Foundation member (1/college) Maria Alegria Vacant Barry Gordon N/A

Student (1/college)

Jeanelle Hope and

Tim Schulze Vacant Colin Nelson N/A

Business/community members (2/college)

Gary Bell John DuBois J. Dale Hudson N/A Leonard McNeil Ed Best

Diane Gibson-Gray N/A

Taxpayers Association (1/Chancellor) N/A N/A N/A Jack Weir

Senior citizens (1/Chancellor) N/A N/A N/A Vernon Jones

General member (1/Chancellor) N/A N/A N/A Jerry Okendo

MINUTES OF THE MEASURE A BOND OVERSIGHT COMMITTEE OF THE CONTRA COSTA COMMUNITY COLLEGE DISTRICT

Date: October 8, 2007 Time: 6:00 p.m. Place: George R. Gordon Education Center 500 Court Street Martinez, CA 94553 Present: Maria Alegria, John DuBois, Vernon Jones, Leonard McNeil, Colin Nelson,

Jerry Okendo, Jack Weir Absent: Gary Bell, Ed Best, Diane Gibson-Gray, Barry Gordon, J. Dale Hudson, Raja

Hudson Staff: Helen Benjamin, Deborah Blue, Gene Huff, Patricia Kaya, Ray Pyle Guests: Kenneth Hambrick, Richard Soderholm CALL TO ORDER At 6:16 p.m., Jack Weir, Chair, called the meeting to order. Those present introduced themselves, including two members of the taxpayers’ association, Kenneth Hambrick and Richard Soderholm. AGENDA - ACTION ITEMS Approval of Minutes of September 19, 2007 Mr. DuBois pointed out that number one on page one of the minutes should read, “…non-union contractors only use part of their core work force.” On motion of Mr. DuBois, seconded by Mr. Okendo, by unanimous vote, the September 19, 2007, minutes were approved as amended. GENERAL AGENDA ITEMS – INFORMATION/DISCUSSION Project Labor Agreement (PLA) Since Jack Weir, Chair, placed the above item on the agenda, he asked that Jerry Okendo serve as temporary chair of the committee so that he could discuss this item. Mr. Weir also provided the attachment for committee members to review. Mr. Okendo and the rest of the committee consented to his request. Mr. Weir said it is appropriate for the Measure A committee to review Governing Board enactments regarding the manner in which bond money is spent and he summarized the rules and regulations of the Measure A committee. Mr. McNeil said he had a basic problem with this issue and asked about the District having a PLA. Mr. McNeil said there was general consensus that the Measure A committee would not be politicized and he questioned why the committee would now consider opposing the PLA.

Minutes of Measure A 2006 Oversight Committee October 8, 2007

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Mr. Weir said there was no issue with the PLA previously because he was unclear on the authority of the Measure A committee. Mr. Weir added that he now has a clearer understanding of the role of the Measure A committee with regard to a PLA and he asked committee members to take a stance against the PLA. Mr. McNeil said Mr. Weir’s request is outside the scope of this committee. Ms. Alegria said the role of Measure A committee members is clear and that it includes reviewing audit reports, expenditure plans, and informing the public. Ms. Alegria said Measure A committee members are not granted any powers to determine how funds are spent. She cited a legal document that stated policy decisions that occurred with Governing Boards should not be entered into on behalf of a citizen group’s committee Mr. Weir said the committee is specifically charged with review of any professional fees. He added the District is using bond money to hire Jake Sloan to negotiate a PLA. Therefore, he said it is in the committee’s purview to tell the Governing Board that an inappropriate use of bond money is being spent. He added that PLAs tend to increase the costs of projects and if the cost of the project is increased, Measure A committee members are not maximizing the money to spend on the facilities Ms. Alegria commented that the San Pablo City Hall was built with a PLA and it was on time and under budget. She said that people need to be careful when reading studies on PLAs and further added that a debate on a PLA is not in the purview of this committee. Ms. Alegria further stated that the Governing Board is the policy maker and also said the committee might want to seek legal counsel on this issue Mr. Weir summarized the origin of PLAs back to the Depression era in the U.S. Mr. McNeil said the committee should decide whether it has the authority to rescind the PLA and it needs to decide if such an action would cause dissension within the Measure A committee. Chancellor Benjamin said the District’s law firm could provide a formal response. Ms. Alegria said a legal opinion would be helpful because she did not recall a committee ever making recommendations on an organization’s policy matters. Mr. DuBois said he has a personal bias with this issue because he has been a non-union contractor for 25 years. Yet, he added that the committee does not have any authority to talk about the PLA because the Measure A committee’s charge is clear. Mr. DuBois further stated that if the Governing Board decided to have a PLA as an efficient expenditure then it is not up to the Measure A committee members to tell the Governing Board they are wrong. Mr. Weir said the Governing Board had little debate when the PLA resolution was approved. He said if the PLA is not rescinded he would like the Measure A committee to give the Governing Board very hard criteria and boundaries on what Jake Sloan is doing with the unions and indicate a specific dollar amount for his services. Mr Weir made a motion to this effect and Mr. Nelson seconded the motion. Before the motion was voted upon, Mr. McNeil told committee members to consider their relationship to the District and cautioned that an adversarial relationship might arise from such a decision. Ms. Alegria objected to the motion and said the Measure A committee should not be interjected into a process which was already undertaken by Jake Sloan. She said a legal opinion was necessary. Dr. Benjamin added that two Board

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members meet regularly with the negotiator and that there are parameters, including a threshold on PLA projects of $10M. Mr. McNeil asked Mr. Weir to withdraw the motion so as not to pursue a personal agenda. Mr. McNeil further requested that the committee proceed to find out if it had legal authority to consider rescinding the PLA. Mr. Okendo asked if anyone from the public wanted to comment on this matter. Mr. Hambrick said with a PLA, 80% of the industry would be excluded from bidding on these contracts and it would cause the price of contracts to go up. He noted that since 2001, the federal government has forbidden the usage of PLAs for government projects and added that the District should try and maximize its bond money. Mr. Soderholm said the Mt. Diablo Unified School District (MDUSD) did not have a PLA for phases one and two of its building projects. In phase three, MDUSD wanted a PLA. He noted that a smaller pool of contractors will create higher costs Mr. McNeil said he recognized the support and opposition for the PLA, but he would like to know who makes the decision on whether the District maintains the PLA. He added the committee would set a precedent if they voted to rescind the PLA. Mr. Weir said he did not want to withdraw the motion for the Governing Board rescind the PLA, and further stated that “the committee respectfully requests that the Board rescind the PLA resolution. Should the Board decline to do so, the committee requests that the Board establish hard and fast negotiating criteria and boundaries that will ensure maximum possible value for taxpayers’ dollars.” Mr. Weir then proceeded with the motion that was seconded by Mr. Nelson and Mr. DuBois , but was opposed by Mr. Jones, Mr. Okendo, Mr. McNeil and Ms. Alegria. At this point in the meeting, Mr. Okendo turned the committee chair back to Mr. Weir. Mr. Okendo motioned that the committee should get an opinion from District legal counsel on what the Measure A committee has legal authority over. Mr. McNeil said there was no need for legal clarification and Ms. Alegria pointed out that page three of the rules and regulations of the Measure A committee defined committee operations. Mr. Okendo then rescinded the motion. Mr. Okendo motioned for clarification on what the committee can and cannot do. The motion was seconded by Mr. Nelson and was unanimously approved. Deferred maintenance policy and management procedures Mr. Weir summarized a previous meeting he had with staff regarding the establishment of a formal policy to address deferred maintenance. Information from this meeting indicated that bond funds can be used for deferred maintenance. Dr. Benjamin passed out the attached draft of Business Procedure 5.01 regarding scheduled maintenance. The following language was presented to the committee for inclusion in Business Procedure 5.01, Scheduled Maintenance Program: Deferred maintenance is defined as the upkeep of buildings and equipment postponed from an entity’s normal operating budget cycle due to a lack of funds.

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Accumulated deferred maintenance results primarily from two causes: Under funding of routine maintenance is one cause of neglect, which allows minor repair work to compound into more serious conditions. The problem is further compounded by choices made during austere financial times when routine maintenance is often deferred to meet more pressing fiscal requirements. The second cause is the failure to take care of major repair and/or restore facilities or building components that have reached the end of their useful life.

At the end of each fiscal year, the Chief Facilities Planner will prepare a report to the Governing Board which shall contain the following elements: (1) deferred maintenance projects undertaken in the preceding year; (2) costs of such projects; and (3) revision to the classification or scope of each project.

Mr. Weir said he would like to make sure that deferred maintenance instances are identified and an administrator agrees that those charges make sense. Mr. Weir said the draft language was satisfactory and he added that the committee does not want bond money spent for something that could have been done through the District’s operating budget. Mr. Weir also said that he wants to be able to demonstrate to the public that all decisions on bond money are reviewed by the appropriate executive level. Ms. Alegria asked that a line item for the portion of a project required because of deferred maintenance be highlighted on the project sheets prepared for the committee. Mr. Weir said specifications within contracts for Measure A 2006 projects should include an architect’s estimate of how much it will cost to keep the building operating properly. Dr. Benjamin said there is no control over some ongoing expenses such as utilities, health benefits, etc. Mr. Weir asked that Mr. Pyle give a report on how these matters could be addressed. Mr. Weir also asked that the 2008 meeting dates be sent out again to all committee members. ADJOURNMENT There being no further business to come before the Measure A Bond Oversight Committee, the meeting was adjourned at 7:48 p.m. :pk